Simple Rate of Return Method

$1$ We are looking at buying the new machine to replace the old machine. What is the annual

depreciation expense associate with the new machine?

$2$ What is the annual incremental net operating income provided by the new machine?

$3$ What is the initial investment for calculating the machine's simple rate of return?

$4$ What is the simple rate of return for the new machine $($to one decimal place$)?$

Annual incremental net operating income $/$ initial investment